How to Budget for Ongoing Home Ownership Costs (Beyond the Mortgage)
When most homebuyers think about affordability, the focus is usually on “What will my mortgage payment be?” But owning a home in Canada comes with ongoing expenses that can sneak up on you if you’re not prepared. That’s why building a realistic homeownership budget—beyond just the mortgage—is essential for long-term success.
As a mortgage broker, I always encourage clients to look at the full picture, not just the monthly principal and interest. Here’s what you need to consider when planning for life as a homeowner.
Fixed Costs to Expect
These are recurring costs you’ll pay either monthly, annually, or seasonally—regardless of how new or well-maintained your home is.
🔹 Property Taxes
These vary by municipality and are typically paid annually (or broken into monthly instalments). In B.C., for example, you can often set them up through your mortgage lender or pay directly to the city.
Tip: Look up the previous year’s property tax bill for any home you're considering buying and if you go onto the city’s website you can typically find the mill rate, which is needed to calculate the property taxes.
🔹 Home Insurance
Required by lenders, and smart to have even if your mortgage is paid off. Expect to pay $1000–$2,000 year, depending on the type of coverage, cost of your home and your location.
🔹 Utilities
Hydro, gas, water/sewer, garbage pickup, all essential. These can range from $200–$500/month, depending on usage, climate, and size of the home.
🔹 Strata or Condo Fees (if applicable)
If you're buying a condo or townhouse, expect to pay monthly fees that cover building maintenance, amenities, insurance, and reserve fund contributions.
Maintenance & Repair Costs
Homeownership means no landlord to call when something breaks—and things will break.
🔹 Ongoing Maintenance
Set aside about 1%–3% of your home’s value annually for upkeep. This could include:
Furnace servicing
Gutter cleaning
Roof patching
Appliance repairs
Repainting, caulking, etc.
For a $600,000 home, that’s $6,000–$18,000 per year in reserve (you may not spend it every year, but it’s good to have it ready).
🔹 Major Repairs or Replacements
Things like replacing a roof, water tank, or windows come with big price tags. Plan to build an emergency fund or keep a line of credit in place for these.
Optional (but Common) Costs
These are lifestyle or location-based, but they add up.
🔹 Landscaping & Lawn Care
Whether you DIY or hire help, outdoor upkeep is a regular expense. Snow removal might also apply depending on your region.
🔹 Security Systems or Smart Tech
Many Canadians are investing in smart home tech or monthly monitoring services. Budget $20–$60/month if this is part of your plan.
🔹 Renovations & Upgrades
Even if your home is move-in ready, most homeowners eventually want to upgrade something. Saving monthly toward a reno fund gives you flexibility down the road.
This doesn’t include food, vehicle costs, childcare, or entertainment—but it gives you a clear picture of what home ownership really costs month to month.
Buying a home is exciting—but keeping it sustainable is key. A well-prepared homeowner is a confident homeowner. If you’re not sure how much to budget for, or want to factor these into your pre-approval discussions, I’m happy to help walk you through the numbers.
